From the moment the new Tax Cuts and Jobs Act (TCJA) passed, there was a flurry of questions about how the TCJA would affect owners of real estate. Signed into law late December, this legislation represents the first major tax reform in over three decades, and stands to impact virtually every US taxpayer.
Bonus depreciation for 2017 was fixed at 50% under the PATH Act, and people are naturally excited about the TCJA boosting it to 100% for new and used assets with a depreciable MACRS life of 20 years or less. This provision of the TCJA was retroactive, and may apply to filings for TY 2017. Sounds good. However, you need to dig a little deeper to understand the practical application of the dates.